By Marta Elena Casanova
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Yesterday, June 24, 2025, the DNCG (Direction Nationale du Contrôle de Gestion), the financial control body of professional French football, officially relegated Olympique Lyonnais to Ligue 2 due to severe economic irregularities. News that shook the European football landscape: the club, which boasts 21 national trophies—including 7 league titles, 5 national cups, 1 league cup, and 8 super cups—making it the fourth most successful club in France, now finds itself out of the national elite not for sporting reasons but because of a deep financial crisis.
Uncontrolled debts and unsustainable management
Lyon’s financial situation, coached this year by Paulo Fonseca, had been under scrutiny for months. Already in November 2024, the DNCG had blocked the club’s transfer market and imposed a wage bill reduction. At the time, the debt was estimated around 175 million euros. But in the following months, the situation deteriorated drastically. In October 2024, Eagle Football Group, John Textor’s holding company controlling the club, declared debts of £422 million, about $575 million. This exposure made ongoing management unsustainable, prompting the DNCG to impose a historic sanction.
Textor’s countermeasures
Facing the concrete risk of exclusion, John Textor attempted a series of emergency moves. He sold 43% of his stake in Crystal Palace and started offloading some of the squad’s key players. According to the club, resources for the 2025-26 season are “more than sufficient.” But for the DNCG, these moves were not enough. The guarantees provided were deemed inadequate against the enormous accumulated liabilities, and the verdict was clear: immediate relegation to Ligue 2.
Sporting impact of Lyon’s relegation
The sanction delivers a heavy blow on the sporting front as well. Lyon finished sixth in Ligue 1, earning qualification for the Europa League. With relegation, the club automatically loses the right to participate in European competitions. They will be replaced by Stade de Reims, eliminated in the playoffs. Additionally, the decision indirectly affects Crystal Palace, which shares ownership with Lyon through Textor: now, without dual participation in UEFA competitions, the English side can compete in the Europa League without breaching regulations.
A future to rebuild
Dropping to Ligue 2 marks a watershed moment. Television and commercial revenues will drop sharply, making it difficult to maintain the current structure. A significant downsizing is expected: the most expensive players will leave, youth academy prospects will get more chances, and financial discipline will become paramount. Lyon will have to reinvent itself to seek a quick return, but the risk is a long purgatory, as has happened to other major European clubs in crisis.
Lyon’s appeal and possible developments
The club is not giving up and has already announced an official appeal against the DNCG decision. However, time is tight and chances of overturning the verdict are slim unless there is a substantial capital injection from ownership. Solid documentary evidence, full transparency, and binding financial commitments will be required to hope for reinstatement to Ligue 1. Without major developments, relegation will become final in the coming weeks.
A wake-up call for European football
Lyon’s case is destined to leave a mark. It shows that even the most decorated clubs are not immune to the consequences of poor financial management. The DNCG has demonstrated rare firmness in Europe, putting economic sustainability ahead of sporting glory. It is a strong signal that could inspire other regulatory bodies to tighten oversight of club finances.
From European glory to Ligue 2 fall
Just a few years ago, Lyon aspired to firmly establish itself among Europe’s elite. Now it must rebuild from the ground up. If confirmed, relegation to Ligue 2 will be a harsh blow to the club’s image, finances, and future. A story that once again proves that without financial balance, no sporting project is destined to last.
By Marta Elena Casanova
